Petrol scarcity: NNPCL bars independent marketers amid surging prices
Nigerian National Petroleum Corporation has reportedly suspended the sale of Premium Motor Spirit – popularly called petrol – to independent marketers after it hiked the product’s price on Tuesday.
This is even as three vessels berthed at the Apapa, Lagos jetty on Wednesday to discharge imported petrol.
The price hike sparked a protest in Delta State as commercial tricycle operators, also known as ‘keke’ riders, took to the streets of Warri and Effurun metropolis to resist the price hike.
Checks by our correspondents revealed that commuters across the country were either stranded or trekked long distances on Wednesday as fuel queues worsened amid scarcity of the product.
Few commercial motorists came out for business, with most of them lamenting the agonising hike in fuel, barely a month after the hardship protest rocked the nation.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, told The PUNCH that the NNPC stopped selling fuel to independent marketers on Tuesday when it raised the price of a litre of PMS to N855 and above across its retail outlets nationwide.
Independent marketers sold the product for as much as N1,200 and N1,300/litre in some states following the upward review of prices by the NNPC.
Fashola wondered why the national oil firm would suspend the sale of petrol to the marketers take without any official communication, even when the marketers had paid for the product over two months ago.
Asked if it was true that many of the independent marketers did not go to the depot to lift fuel, Fashola responded, “What are they going there to do? They have stopped our loading. All the tickets we have in the kitties of NNPC, they are not treating them; everything has been suspended.”
When our correspondent inquired to know if the suspension was done despite having paid for the product ordered, he replied, “Yes, our tickets were suspended for loading. They have not been attending to us since yesterday (Tuesday), and there is no official communication yet.
“It is a very bad situation for somebody who has paid for the product, maybe like two to three months ago, and all of a sudden, you stopped loading, maybe because you want to change the price. And it’s not the fault of that customer, because it is supposed to be cash-and-carry. So, I think the NNPC should look at that situation critically.”
It was learnt that NNPC usually prioritised major marketers while IPMAN members resorted to private depot owners, who sold at higher prices, leading to a wide gap between the prices offered by both categories of marketers.
“We’re usually forced to go to private depots, it’s not out of our own volition. We were forced to go there because of inadequate supply,” Fashola stressed.
Speaking on the Dangote refinery fuel, which is expected to hit the pumps soon, Fashola said marketers would monitor the situation till Friday.
“We are watching the development. We are monitoring it; we will wait, maybe by Friday we will know where we are going by the time the Federal Government makes a pronouncement as regards the price. There is no official communication yet.”
The IPMAN official added that each filling station sold at their convenient price because NNPC couldn’t fix prices for other operators in the sector.
He stated that the new price announced by the state-owned company is only binding on the NNPC retail outlets.
“You know, NNPC cannot fix the price for us. They fixed the price for their stations; they are now a limited company. They have their retail outlets. That new price is their internal arrangement. So, we are yet to have an ex-depot price or marketer’s price,” he explained.
While believing that the new arrangement will close the price disparity between major and independent marketers, Fashola reiterated that at N855 per litre, the NNPC was still paying subsidy on petrol.
“I believe the price disparity gap will be closed somehow now. That is our belief. The truth is that, with the N855 in Lagos, and the landing cost of petrol, there are still some elements of subsidy. If the NNPC claimed that they are selling at half the cost of the landing price at N568/litre, it means the landing cost should be around N1, 200/litre. If they are selling a litre of petrol at N855/litre, there are still some elements of subsidy,” he added.
He said the association was expecting the details of the arrangement between Dangote and the government on the supply of PMS, especially as Aliko Dangote announced that the NNPC would fix the price.
“For now, we don’t have the details; it’s only Dangote who made the announcement that NNPC would fix the price. So, it’s in two ways. Maybe NNPC wants to act as an off-taker for the Dangote refinery, and they will now start distributing on behalf of Dangote to the marketers. There are a lot of things involved in this Dangote naira-to-naira transaction. There must be something that’s a factor. Maybe that will bring the price to a reasonable level, I don’t know. It may not be called a subsidy, maybe an in-house arrangement.
“If Dangote is buying naira-to-naira, there must be some little difference in terms of cost. It might be so small, but I believe there must be a difference. They know what they are doing, we are waiting for them to come out and we will react,” Fshola noted.
NNPC spokesperson, Olufemi Soneye, did not reply to calls or messages from our correspondent on the matter.
The PUNCH reports that the fuel crisis that has lingered for two months worsened on Wednesday following the price hike.
Several filling stations seized the opportunity to extort customers who were in dire need of the product for their vehicles, power generators and other machines.
Some of the stations in Lagos and along the Lagos-Ibadan Expressway sold petrol around N900 and N1,200/litre as the queues worsened across Nigeria’s commercial capital city.
Residents of Ogun border communities disclosed that they got PMS at N1,600/litre from black marketers, claiming petrol supply had been banned from the areas.
Though the NNPC denied ordering Tuesday price increase, all its retail stations have adjusted to the new price, leaving Nigerians not knowing who to believe.
Commuters were stranded as there were a few commercial buses on the road to convey passengers. The drivers conveyed only commuters who were ready to pay more for transport fares, blaming the rise in fares on the high cost of fuel
Three vessels arrive
The PUNCH gathered that three vessels arrived the Apapa depot in Lagos on Wednesday to discharge petrol.
Multiple sources told our correspondent that loading improved on Wednesday compared to Tuesday, when the marketers stayed away.
“Loading is picking up slowly. It is far better than yesterday (Tuesday),” a source said.
Another depot operator, who spoke on condition of anonymity because he was not authorised to speak on the matter, said supply was ramped up by the NNPC, the sole importer of petrol.
“Supply is good today (Wednesday). Three PMS-laden vessels are in Apapa jetty now as we speak. Two of them are already discharging the product,” the depot official said.
It was gathered that the NNPC was making efforts to sell its old stocks before starting its transaction with Dangote refinery.
While unveiling its PMS on Tuesday, Dangote announced that the product would hit the market in 48 hours, adding, however, that this was subject to the readiness of the Federal Government and the NNPC.
Nigerians are eager to know whether or not the Dangote refinery could crash the price of PMS.
TUC slams FG
Meanwhile, the Trade Union Congress of Nigeria on Wednesday expressed shock and dismay over Tuesday’s hike in the pump price of petrol, demanding its immediate reversal by the Federal Government.
TUC in a statement by its president, Festus Osifo, contended that the sudden hike in fuel and electricity costs will exacerbate the poverty level, worsen the suffering and hardships across the country and may trigger social unrest.
The statement read, “TUC received the news of PMS Price hike with great contestation and grave concern. The burden of PMS price increase is huge and percolates all facet of our social-economic life.
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“This sudden hike, implemented without consultation with critical stakeholders, represents a blatant disregard for the welfare of the Nigerian people, particularly the working class who bear the brunt of such decisions.
“The disturbing news of the increase in PMS pump price all over the country has sent a wave of apprehension and depression across the length and breadth of the nation.
“This is in the wake of an already existing unprecedented hardship upon citizens.
“In addition, we are deeply troubled by the further hike in electricity tariffs to 250 percent a service that is essential for the survival of the poorest in our society. The timing and magnitude of these increases, in the absence of any meaningful social security measures, demonstrate a lack of empathy and understanding of the challenges faced by ordinary Nigerians.”
It added, “Why does it have to be the common Nigerians bearing all the pains of high cost of living while those in power enjoy increased allocation and affluence?
“The government has not made any concerted efforts to reduce the cost of governance or personal effects, nor have they focused on directing resources or effecting policies that would strengthen the naira and improve the standard of living of our citizens.
“The Congress has long posited several strategies that should be activated towards improving the strength of the Naira and give value to every kobo spent by Nigerians as this is one of the root causes of all the economic woes we face as a country today. Yet much hasn’t been done about these recommendations.”
Also, the Nigeria Labour Congress on Wednesday responded to the denial by the Senior Special Assistant to President Bola Tinubu on Print Media, Abdulaziz Abdulaziz, regarding an agreement on minimum wage and fuel price hike.
The union described Abdulaziz’s denial as “amusing” and questioned his credibility, suggesting he might be suffering from “selective amnesia” or “attention span deficit.”
The Presidency on Wednesday accused NLC president, Joe Ajaero, of playing dirty politics following his declaration that the Tinubu administration betrayed the NLC by increasing the price of fuel despite a mutual agreement.
Speaking in a statement signed by Benson Upah, Head, Public Relations, NLC, the union reaffirmed its statement, challenging Abdulaziz to reveal the truth about the presidential meetings with labour leaders. They also criticized his personal attack on Joe Ajaero, stating that Nigerians don’t need Ajaero to recognize the harsh realities of life under the current government.
“The union emphasised that Nigerians deserve a decent life, free from harassment and starvation, and warned that “falsehood does not live forever.” They remain resolute in their stance, despite the government’s attempts to discredit them.
“Whatever the matter is with Abdulaziz, we stand by our statement. And if Abdulaziz was at those meetings as he claimed, he should be courageous enough to let the world know whether the President gave the labour leaders one hour to meet and resolve to either accept and allow increase or accept N62,000.
“Labour leaders instead chose to meet outside the Villa and report in a week. When they came back, they were blunt and rejected the offer.
“As for Abdulaziz’s side-dig, he should stop insulting the intelligence of Nigerians as they do not need Comrade Joe Ajaero to know they have been taken for a ride and that life has never been this mean, all due to the policies of government.
“We also find it necessary to let Abdulaziz and those who sent him know that Nigerians are entitled to a decent, respectable life free from harassment, intimidation and starvation.
“Government may have all the ultimate weapons of coercion, true power resides with the people. Finally, we are also acutely conscious of the fact that falsehood does not live forever.”
Protest, lamentations
Commercial tricycle operators in Warri and Effurun metropolis of Delta State, alongside aggrieved women and youths took to the streets on Wednesday in a peaceful protest over the persistent scarcity of fuel amidst the hike in price.
The market women and the cyclists, in their hundreds, marched through the major roads, calling on President Bola Tinubu to urgently intervene and reverse the fuel price hike.
The protesters carried placards and chanted slogans expressing their frustration and anger over the government’s decision to increase fuel price to almost N1100/litre, which they say has worsened their economic struggles.
Some of the placards had inscriptions such as ‘Tinubu, intervene now to alleviate commuters sufferings’, ‘Tinubu, activate Warri, Kaduna refineries without further delay’, and ‘We are suffering in silence, the fuel price hike is a killer.’
One of our correspondents observed that most of the filling stations along the Warri-Sapele road were shut to motorists on Wednesday morning while the few that were open for business sold petrol at above N1,000.
Consequently, the development had adverse effects on commuters within the metropolis as well as inter-state travellers as motorists adjusted their transport fares upwards.
Workers ride bicycles
Following the increase in pump price on Tuesday, more residents and workers, including civil servants in Borno State, have embraced trekking, tricycles and bicycles for mobility.
During the early hours of Wednesday in Maiduguri, the state capital, there were less vehicles and more pedestrians on major roads.
Some residents of Nasarawa State lamented the hike after it forced many of them to resort to trekking as they could not afford the luxury of boarding tricycles and buses.
The product, which used to be sold between N930 and N950/litre in most stations in Lafia and its environs, is now sold between N990 and N1,000/litre.
Our correspondent in Lafia observed on Wednesday that many workers and businessmen trekked short distances to their workplaces to avoid spending outside their budgets.
Tricycles, motorcycles and vehicles operators in the state capital had jacked up their prices for both short and long distances due to the rising cost of fuel.
Tricycle riders in Lafia had fixed N250 for a drop per passenger but with the increase in price, the transporters jacked up their prices to between N350 and N400.
In Ilorin, the Kwara State capital, residents stayed indoors following the increase in fuel price.
There was a dearth of vehicles on the streets of Ilorin as a result of the increase in the price of PMS.
Many vehicle owners, who were caught unaware, angrily abandoned their cars at home or parked by the roadside to make use of commercial motorcycles and tricycles to their respective destinations.
A litre of petrol was sold at N870/litre at NNPC stations while independent marketers sold at between N950 and N1,200/litre.
However, commercial vehicle operators in Ilorin complained of low turnout by passengers.
Similarly, one of the leaders of IPMAN in the state, Alhaji Kunle Sanni, tasked the Presidency to halt what he described as “their flamboyant lifestyles” while masses were being pushed deeper into poverty.
The septuagenarian told The PUNCH that it was regrettable that the Presidency was travelling around the globe in needless multi-billion Naira private jets while its citizens lived in penury.
He said, “There has to be a social service that any government must provide for her people but the present government hasn’t done anything in this regard. Instead all of them, the Presidency and National Assembly members, are living flamboyant lifestyles while the masses are suffering more and more.
“The former price of N580/litre was on a very high side, we complained bitterly against it and expected that Dangote product would give us a relief but here we are with another increase and all manner of sabotage stories about Dangote refinery. What kind of a government is this?” “I haven’t sold PMS for over three months now because of the increase because I can’t stand people’s curses on me for what I don’t know anything about.”
The hikealso left hundreds of commuters stranded in Kaduna, with many filing stations closing shop or selling at exorbitant prices.
On Wednesday, residents were forced to trek long distances or opt for expensive alternative transportation.
Journalist Amos Mathew parked his car due to the hike, spending N400 on a tricycle ride instead of the usual N100.
